the trading session. a little bit more confirmation. all in all, generally, a trending higher market today. >> that will do it for this edition of power lunch. >> street signs begins right now. have a great afternoon.

>> back to the markets. where do we even start. >> start rethinking thaefrg i thought about stocks. >> you have got a simple process. number one, you have got massive

liquidity in the system. number two, you have got a search for yield. that's where the yield is. number three, you have got massive amounts of buy backs restricting supply. >> how much lower would the dough be if there was not. >> and think about it. the dow went from 6500 to 15,000? >> going the pose that to two market guests. let's talk funds. up global growth.

>> giving to what will be junk bonds but now we call it high yield. >> a warning, the economist saying there is a disconnect between wall street and main street and the markets are in danger of a big crash.

>> six months from today we will have you back on the show. >> will be dow be higher or lower? >> higher with one caveat. that being that there is no change in fed policy. >> maybe we see another 10, 15% higher, potentially 20% higher. recorded numbers that were better than expected on the

bottom line. >> six months from now, i think a little bit lower, but starting to climb back up. six months from now, we could easily be lower.

>> that's what it takes to make a market, guys. i want to point this out. if you listen to the they sayers back in 2007, you saved yourself a bunch of money. >> do you think there is too many people? >> you don't have to name names. some people are inclined to be pessimists and bears. yesterday it was 18 and then the dip fires came in.

>> we want to know what crow think. in six months the dow will be higher or lower? tweet us. >> larry meyer joins us from las vegas. how much would you attribute these report highs in the stock market to the fed?

>> we have seen that, but of course, very low rates help the stock market. >> how long do you think the rates are going to remain at record lows, sir? >> well, it depends on what you're talking about. for the fund rate, we know they have made an absolute commitment that they're not going to raise the rate at least until we get to a 6.5% unemployment rate. long term rates will rise long before then. they should move up gradually from today on. in anticipation as we get closer and closer to when the markets expect the first rate hike. the issue here isthis. we expect. the fed expects a barrage wall

rise in rates. >> so the fed has ways of controlling this. the fed communication has been incredibly good with incredibly good communication that won't be surprises like there were in 1994. not going to be an inflation shock. that was the situation in 1994. we are very unlikely to get anything like that. investors should worry. >> larry, we got to go in a second. i got to ask you this.

you have heard it and you will hear it again. do you subscribe to the belief that equities are doomed when the fed slows or stops? >> absolutely. absolutely not. we know that equities do very well. the economy is recovering. agz r absolutely not. it's only when rates get high enough that they're not going to slow the economy. >> thanks a lot. appreciate it. >> we have got the three things that you need to watch for in tonight's earnings after the bell. does tesla have the power to be the apple of the auto world. >> and abercrombie & fitch says no fat kids allowed?

really? does it even matter? all of that coming up. ♪ ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh

>> for the first time ever you will be able to use your tsa pre-check for international flights. on airlines like alaska and u.s. air ways would be allowed to zip through security. it's fantastic when it works.

sometimes they say get in line. >> is that spectacular? >> a technical glitch or keep you honest? >> you can't always zip through. >> you can't get a big head. >> too late for me. >> tesla ready to report after the bell. >> so among the things that people are going to be looking for, we will get to that they

want to be at 25% by the end of this year. what's happened with model s cancellations this water? that will tell us a lot about what we can expect. what i'm looking for is what happens with the stock after tesla reports. shares out there. available ones. tesla does better than expected, we could see some of that pushing the stock going higher.

>> want to give you a little bit of a list. tucker amc. will tesla ultimately join that list? >> if tesla succeeds, they will do something that has not happened since december 1924. no one has succeeded. i would say tesla has come a lot further than most of us expected it could. as with the auto industry, the proof is always in making a good car. startled and shocked at the fact that it is a good, comfortable

high performing car, unlike some of the other start-ups, whose products had a variety of flaws. there is a lot left between their first profitable quarter and becoming a viable car company. >> one is daimler, which makes mercedes benz. this actually brings up an issue. they make and sell cars and

ultimately they have got to get to doing that with a profit. which are a permission for other car makers to sell met under california regulations, which i won't get into. this one has three sources of income. one of the sources people will be looking at. making and selling cars. >> right. >> or is there profit based on these other two sources of income? >> thank you is much for your comments. we're watching for the earnings. some breaking news with an update on the jeff skilling interviews. what are you seeing? >> as we reported last hour, the former ceo could be out of prison by 2017 under the

sentencing deal. that would be roughly ten years early. he will no longer be permitted. skilling's long term defense attorney also talking about the closure. although the recommended sentence would be more than double any defendant, jeff will at least have the chance to get back a meaningful part of his life. and with good behavior, he could

be out by 2017. back to you. >> scott, thank you very much. big news there on skilling. next up, do you want a ferrari? who doesn't. good luck finding one, even if you can afford it. >> maybe you need some caffeine. >> the earnings squad is coming up with herb greenburg. >> and also, why aber com bee and fitch's shrinking customer base is answering hate mail today. are you still sleeping? just wanted to check and make sure that we were on schedule.

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>> welcome to the earnings squad. helping you trade the stories you may have missed. let's start off with the score card.

herb, we have got to turn it to you. >> this is going be the second call for ceo brian kelly. i think it's going to be interesting to see what he does. people will be looking at margins because of the possibility of people going elsewhere. they are going to be looking at sales and a lot of different things here. so my point is, be very careful. watch what they're saying about any potential growth. people are going to cut them a little slack. >> you're watching monster beverage. >> suing monster saying

marketing highly caffeinated drinks to kids. analysts say the critical part is that the caffeine content was too high and the energy drink makers have to have caffeine content. >> any sniff of regulation for any industry is always a bad thing. monster's defense has been that monster beverages don't have much more caffeine than a cup of coffee and then you think why not have a cup of coffee. >> you have already seen a decline in sales growth. you have seen margins under pressure. again, those from the fundamental stand buoyant are ones you want to pay attention to. >> always see those rumors. >> let's talk about titanium dioxide.

there are a few times that we are able to talk about this and i thought i would take the opportunity to talk about it. an ingredient which is used to increase the opasty of pant and plastics. typically used to make white paint more white. with any sort of producer, the issue is the falling price of tio 2. if we were able to chart it, it's not really a liquid market. >> i know you say that. >> if the prices have collapse ed a lot of analysts think they

don't have the financial where with all to do that. >> good question. >> over the past six months it has been a monster run. >> street signs will continue with the ceo tim armstrong, right after this break. rement dm is different; how we get there is not. we're americans. we work. we plan. ameriprise advisors can help you like they've helped millions of others. to help you retire your way, with confidence. ♪ that's what ameriprise financial does. that's what they can do with you. let's get to work. ameriprise financial. more within reach.

>> the big top stories of the day that you might have missed. first of all is a wow for fusion. >> this is a disaster due your. remember that segment? it was pretty good. these guys could have a big near term disruption. securities out defending the sto stock. >> i think, also, whole foods.

>> they really are. same store sales rose. so somewhere in the last couple of weeks there was a big turn. >> he was brought in from fizer to turn this company around. >> forecasting sales well below

market estimates. >> that's what you get. down 16.5%. cut the hold. raises their target, though, to 27 from 26. we don't have time. >> we do have to bring in the originat originator. you have got another multilevel marketer. on your radar today? >> it's called visalus. it's owned by a company called life. i wrote a piece and said be ware of this get rich quick ipo. it shows you what can happen. i was concerned. they pulled the ipo last year. they are going to spin it off. today. >> we don't need to know.

>> they are operating profit down 68%. >> now tim, your results are right in line with expectations. your stock is down over 9.5%. how do you explain that decline? >> great to be on with you. and very important day for the aol employees and customers and consumers. second quarter in a row of growth on top and bottom line growth. so, from our standpoint, you

know, whatever the stock is trading at right now. mo more. >> there is ongoing decline in subscription revenue. how do you address those concerns. >> we have done a great job moderating them. it's up year-over-year on both sides. a couple of the big companies have had good earnings around

adds. a a lot of the companies we have competed against haven't. >> those in your other media sites. >> consumers going around on major brands. going to more countries by the end of this year. i don't think anyone would argue has turned into a global power house.

in the investment has been investment in local communities. you see some other really well known investors in the space. i think our job is to invest where opportunity is. and look, my job, i don't get paid for making short term decisi decisions. our board doesn't. >> thanks so much for joining us. thank you so much for joining us. >> high stakes? mill shakes. somehow we will put those two things together. >> plus the plus sized problem for aber com bee. but first, bill griffith with what is coming up in the closing

bell. >> and coach k is with us today, legendary basketball coach will tell us what lessons wall street could learn from the hard court. all that and more when i see you at the top of the hour.

>> casino stocks have been on a roll lately. this company owns casinos. despite missing wall street earnings expectations. i believe this is your top pick. i'm interested in what is done over the past three years. the stock is up over 500% and you're still saying this is the one to buy? >> we are.

we're doubling down here. the first quarter expectations, they did surpass them in terms of the ebitda performance. so, we were happy to see that. had good flow through. i think what you're looking at. >> mind you, you say that it did exceed your expectations but i think it missed a lot of other people's expectations. >> the company came in adjusted for the luck factor. $280 million. i think that, you know, below that line, there is a lot of moving parts, but certainly if you look at the fundamentals of the company, that's where the stock is continuing to trade up. >> david, we can be tough on

analysts but you named this the top pick in the space. you note the filipino growth is four times higher. tax raids are lower. >> it's an option to go to the philippines. they're probably going to get more rebates. they can play with the tax differential. the gaming tax is 39%. the gaming tax for vip revenue he can get more of a rebate if he chooses to gamble. >> certainly not stopping the cow from being a boom center. thank you very much. >> thank you guys. >> no business is as rough and tough as cut throw as the restaurant business.

>> more people are trying out joe's crab shack for the first time. pizza hut is owned by yum brands. >> the parent company of chillies. they are simple and easy to produce. that's a nice thing. but will it matter for the stock? >> you know, i think so. the key i think for any of these restaurant companies is how good is the experience and do customers find it compelling? i think maggiano's is one of the best in the industry and actually doing a much better job

which is why the trends have been so good. another company you like like buffalo wild wings is trading at a fairly good discount. how under valued do you believe it to be? >> you know, we have got a target price that is probably about roughly 15% higher than where the shares are now. and you know, over time, my belief is that as a company continues to produce, drive earnings higher and keep growing its dividend and repurchasing shares, there is a probability that the target price is going to drift higher. >> okay. and then buffalo wild wings? why is this not overvalued at 25 times earnings per share? >> that's a fair question. i think the key there is that if, in fact, i think it's a big if.

>> bob, a pleasure. as always. >> thanks. >> still ahead, ferrari cuts production. is that a big red flag or actually a sign of strength? >> and one big fat pr problem. street signs is back in 2. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros

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>> but did he really say that? the article reference where he said we want a market to cool

good looking people. seven years on, people are outraged. just check out some of the tweets. sales might become a little thin. someone else said and i'm never letting my children shop. you were the expert who were closing in the article. >> maybe he didn't say fat. and i don't know. >> he would just assume not have in the stores. >> he is one of the most disciplined -- he is one of the earliest and most success ful s lifestyle brand guys who was out

there before anybody else and he built a powerful lifestyle brand. with a core consumer that you can define anyway you want. it is cool, sexy and young. >> yeah. >> and that's it. >> and what's -- i will what's ? right? >> there's nothing wrong with that. >> listen, he doesn't sell xl sizes to women. so in a way, he is saying, there is nothing here for you, we actually don't sell it. we does sell xl for men, maybe it's a football player, but not the 4xl. isn't that his right? he can serve whatever food he wants at his restaurant and if no one chooses to eat there, so be it. >> and he's one of the most successful at being that disciplined. he's got one of the greatest brand positions out there that he does not diverge from. it's even in hiring associates. >> also, this is a very pc-sensitive world. a lot of people are outraged. but at the end of the day, in terms of build shareholder value, the stock is up 11% over the past year, up 32% over the

past three years. from a shareholder perspective, does this even matter, jan? >> does it matter? maybe. but is he doing the right thing to build his brand? yes. maybe i don't like the fact that i can't get in the right clique in high school, but that doesn't mean that everybody doesn't want to be in the clique. that's what he's done. he's built a club atmosphere where if you don't fit the club, you really shouldn't be shopping in his store. so he's got this post-collegiate and team person, who's the young, washboard ab, good-looking, that's their image, that's the people they try to hire, that's who's in their ads -- >> a little creepy. >> a little creepy. >> you're just jealous because they've got really awesome six-pack abs. >> but that's also 30 years younger! what the -- >> and it's working. >> anyway, let's move on. >> and as long as it's working, it's good for the shareholders. >> will it continue to work, though? we look at the majority of americans now, with all due respect, i think 67% apparel population is now plus-sized. so are they going to gradually

build themselves out of an audience? >> no. he will not diverge. his core consumers is what he will continue to build his business on. and i believe he'll be successful doing it. >> if mcdonald's started selling a $30 rib eye, that wouldn't sell. >> that's exactly right. very good. >> thank you, professor. >> i agree with him 100%. >> apparently i need to get to the gym and stop reading so much. by the way, i just got in my ear, that we got ahold of the company. a&f with a big fat no comment on that story. >> of course. >> let's talk about jcpenney then. what do you make of this? i think sharply lower than expected forecast sales for october. but is this a surprise? >> that's that $30 rib eye you're going to buy me? >> wait a minute, sharply lower? i had a 14% negative number. they came in at 16 and change. i don't know if that's sharply lower. the street was at 13%. >> she's on my side.

yes, it was worse. but they have more cash than people anticipated. i don't know what the stock is going now, because i've been backstage a while, but it was up when it started out this morning. so i think people are comfortable. they think, gee, it wasn't any worse than i thought it was going to be. cash was a little better. they're not going broke. now the wait is, can mike bring back the product that will drive sales and my bet with brian is, yes, he'll be able to bring back enough product to drive sales in the third quarter and run positive comps. >> positive comps by the end of the year. two quarters down, i'm up, two quarters to go. we will see. they may not make any money on it, but they may do it. >> and can i double down on jan's bet? >> quickly. >> for steak, dinner, i'll double down -- just come with us. we'll have a giant meal and then go to anner car bo er kroner cae & fitch. i'm here and i've just gotten some breaking news on mbia, which has reached a

settlement with societe generale. it was part of 18 banks that sued mbia over a planned breakup of its companies several years ago. that went to court. ultimately, the court found in favor of mbia, but now they have settled to the tune of $350 million that mbia will pay to socgen. that was just brokered and blessed this very day by the department of financial service of new york. and i'm told that it should bring an end to a long-running saga that has hobbled the process of mbia, and help it achieve a higher credit rating for its municipal bond insurance aspect. that's so the breaking good news on that front. on a totally different note, i'm just coming out of auditorium here, where stanley drunkenmiller made a compelling case against commodities. he thinks that the ten-year supercycle in commodities that people have been talking about is essentially over and now says that we ought to be shorting brazilian currency, south

african currency, and especially the australian dollar. he thinks that should be going away, because it's really overvalued and so are commodities prices. and finally, he said a hearty endorsement for google. google is his single biggest holding, and he literally said in the u.s., guys, he cannot think of a better positioned company than google. he thinks it's strong, it owns data, has great potential over the next couple of years, unlike some other tech names that are engaging in financial engineering, brian and mandy, thanks to hedge fund managers. >> well, two things on that, kate kelly. great reporting. first of all, good for brian's bowlers. that was the first pick in the cnbc stocks draft 2013. sec point, don't feel sorry for me with the australian dollar short. >> i'm sorry to have to do that on your show. >> i own u.s. dollars, not australian dollars. >> you have a mortgage in australia, right? >> absolutely. >> this is fantastic for her. >> the aussie dollar going down, it couldn't be better for me. >> she's burning money.

>> apparently your country needs to look for other sources of growth than just commodities, because prices will be plateauing. >> i think we need a "crocodile dundee 3." >> up next, the very slow burn of a very fast car. with the new staples rewards program you get 5% back, on everything. everything. everything. everything. everything.

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ferrari is cutting production. is this a sign of strength or a slump? well, robert frank is here with

the whole story. which camp are you in here? >> could be a little bit of both. ferrari's chairman saying the company will build only 7,000 cars this year. that's down from 7,300 that they made last year. the chairman said the move is to protect the brand's, quote, exclusivity. ferrari owners have been worried for years that the brand may be making too many cars. the brand once promised to make only 3,500 cars a year and a recent expansion had some worried that the prancing stallion was becoming just another horse. but there's another reason for the cuts. could be demand. the u.s. and japan are doing well, but ferrari sales in china and europe are way down. sales in europe down 40% this year. in italy, get this, ferrari only sold 300 cars last year. that's far below normal. a ferrari spokesperson assures me that sales are strong at its new la ferrari model, which costs $1.3 million, guys. that's already sold out. so -- >> just say that one more time?

>> you know who would be a good driver of that ferrari? >> dario franchitti. which is odd, because he's actually scottish. >> that's culturally insensitive when you do that accent. smash a turtle with a hammer, jump down a pipe, and collect gold coins. >> "closing bell" takes you all the way to the close. that's next. hi, everybody. another record setter, welcome to the "closing bell," i'm maria bartiromo at the new york stock exchange, where there are still no signs of a pullback today. >> i'm bill griffeth. how many traders do we see walking the floor around here, shaking their heads, saying it's still going up at this point. this historic bull market continues. looks like another close above 15,000 for the dow jones industrial average. had been higher earlier. we were up 24 points. now it's again at 14. >> seems to be a bit of a vacuum of catalysts, not a lot of economic data, not a lot of earnings news, so this market